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Stossel

News/Business. (2012)

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  FOX News    Stossel    News/Business.  (2012)  

    November 18, 2012
    7:00 - 8:00pm PST  

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>> four more years. what's going to happen? what does my crystal ball say about things like marijuana. >> i inhaled frequently. >> what happened to energy policy? >> it is intolerable. accepted de pen tense on energy sources. will the regulation go bigger>> what will we see in four more years? that's our show tonight.
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>> i have my crystal ball i can see what's going to happen. first over the next four months pundits will scream about fiscal cuts. will congress work out a deal? yes. i can see it. th they will meet and hold press conferences and threat and predict disaster and reach a deal right before the end. it won't solve much it will postpone the reckoning and could they congratulate it saevend the media will -- the media will send it to someone else. >> predict the future. >> looks pretty good. a lot of people are waking up to know that what we have today
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isn't workable but in the short run the people in charge aren't going to admit they are not bankrupt. they will keep putting it aside and but then we will eventually probably destroy the dollar. it will be forced to revamp and enhance the system of financing. i think it won't be anything quite as bad as the assistant collapse. but a lot of changes will have to come. i think true bankruptcy will mean we no longer can main tan an em tire and maintain entitlement they will have to face reality. don't expect all of the solutions to come on january 1st. they will have some doctored up proep poedz s -- proposal.
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ultimately we will have to face up to the accept -- excessive spending and government but not for a little while yet. >> the secstration law was designed for the unwillingness to make tough cuts. this is how jim engel reported it. >> it was so distasteful officials would do anything and everything to avoid it. >> you don't think they will say, gee, we don't want to cut this money for the military, domestic spending we are going to cut entitlements make real decisions. >> they assumed they made it so bad they wouldn't accept it. i don't think they did anything. they are not cut talking about cuts. they are talking about cutting a trillion dollars over 10 years. they are not talking about real cuts. they are talking about cuts in baseline budgeting. >> explain baseline budgeting. i hate it when you politicians talk that way.
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no person understands that. what you mean is if i am ngoing to cut we will spend next year. when you guys do it it means -- >> we have already written into the next ten-year budget automatic increases. if you are proposing let's say a billion, $10 billion increase for next year and you cut it down to 9 they say they are cutting 10 percent. they are not cutting anything. they are only increasing 9 billion instead of $10 million. it is done on purpose so people get confused and if cuts don't mean anything they mean only nibbling away at increases that's the reason nothing ever happens and they have got a way with it for a long time. both sides whether liberals or conservatives they want to spend money it was a lot of wealth you should get along with it.
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they are bankrupt they won't admit it there's why there is so much anger and frustration. it is hard to diff sri up loot when it is so hanothing to diff sri up. -- diff sri up. >> the media says the tax increases if they and spending cuts do happen the cuts total 55 billion from defense, 55 billion from domestic spending into the future that that will be terrible. >> it's a nightmare. i am worried about it, too. >> that's a total disaster. >> it will create chaos. >> drive our economy off the fiscal cliff. >> really? well one of the people who teaches me economics says no. it might be okay. russ roberts of the hoover institute. >> it's not this big horrible crisis? >> government spending is 3.8 trillion and you are going to cut 100 billion?
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that's the deck chair on the titanic. it's not really a dramatic change. >> might be good if it's across the board. >> if they are actual cuts i think that's good. i tut 10 percent across the board if i had my drtuthers. let's save the things that are really important and cut the things that are not important. >> test all or not. it's all crucial. connection increases but we have a trillion dollar deficit. we are already spending each year a trillion more than we take in. saying we are going to raise taxes by 400 billion in one year, we are already raising them a trillion in the future. so to me the idea of raising taxes is probably a good idea. it says this spending that we have been doing is not a free
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lunch. >> not just raising taxes let's even things out a bit get rid of some deduction make the code simpler. that wouldn't be bad. >> tax reform would be a great idea. there's good tax reform some bad tax reform. some would be good to get rid of some maybe not so good. certainly taking advantage of this scary fiscal cliff would be a good idea to prod congress. >> if i look at the list of them i can't see congress agreeing with them deductions for pension contributions, mortgage deductio deductions, earned income tax credit. there's having children. oo a oo charity. >> i don't need this to say they are not going to give that up. >> they could put a cap on the size on the total amount of
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deductions. >> about half of spending cuts would come from the military budget. you are not a defense specialist. it is almost a 10 percent cut i am told. it is terrible. the republicans are historicyst about it. >> both parties are hysterical. it would bring us back to where we were in defense spending in 2006. with inflation. which isn't a crisis year for the pentagon. the had years of luxury and big increases. if you cut the budget a bit they scream from the heavens. it would weaken our defense systems be irresponsible. senators mccain and graham has a threat to the national security
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must not occur. >> it is not the best way but it could be useful. i think we need bigger cuts than the defense budget because we do too much. >> i think austerity. >> what do we do too much? >> we try to make it everything in the world. every unsafe country is with us the ability to defend ourselves if we cut it we need to prioritize it more. >> they talked about being able to save on things because the military was forced to pay for things they didn't even want. i was skeptical. looking it up the army says they have exceeded their space wait and power. the army chief of staff warfare has chained. we can't believe we will ever see a stray conventional could
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be flikt again. they insist on buying these things. >> it is somewhere important whe from the state number one to turn it off. that's in ohio and michigan which has a lot of important members in congress they keep saying buy more and more. >> let's return to the big picture. they are talking about cuffs cs if they happen. spending will grow. big deal. >> i think we are sending a signal wouto the world we are n acting lake grown-ups we are not mature and responsible. it would be great if someone in washington could take the lead and say hey it's time to acted like a grownup. most important things i learned is what are you spending the money on? i don't think we get $3.8 trillion worthed of value
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from what we are currently spending on. >> not from food stamps? they are going up sharply. >> how about people are disabled? payments up sharply for that. >> the country gets safer all of the time but they get more flexibility. >> people go on disability. >> the value of government guaranteed mortgages going through the roof. >> yeah, they are being a little more cautious now. i would be more worried about the value of pensions for state employees which will be difficult for the federal government not to step in and honor the state gvtmentes to -- governments to pay. that's a trillion dollars on top of everything else. we made too many promises we can't keep. he lives closer to our means and live wisely.
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>> thank you. up next my crystal ball reveals the supreme court which says that she is old so is he and he, therefore he will get to the point of being new liberals. we will tell you when we come back. from investing for the first time... to investing with knowledge. the potential of td ameritrade unlocked. nyse euronext. unlocking the world's potential. to a world of super-connected intelligence. the potential of freescale unlocked. nyse euronext. unlocking the world's potential.
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so, which supeast 4g lte service would yochoose,
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don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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>> before the election some libertarians said obama romney who cares they are big government. bureaucrats. not much difference will one do. one lasting will be obama's appointments to the supreme court. that will effect whether you get hired where your kids attend school, whether you protect yourself with a gun. what should we worry about or be glad about? let's talk to andre nepal tano. should we worry? >> you should worry. i would worried with either of them appointing a supreme justice but i worry far more with president obama replacing
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retiring justices. let's say custtis ginsburg who is not well who is a serious liberal who is up there in years -- >> we have four justices in their 70s ginsburg and briar 79 and 74 both liberal judges. >> the justice will sit there another 10 years if nature permits it. if president obama replaces ginsburg it will be a person with like mind but they are 40 years his junior. it is a unwell senior citizen for a young aggressive coalition building youngster. that is what you are going to get. you will get someone like justice sotomayor or keg began who plans to sit there another
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30 or 40 years. >> 30 years is the norm now. when it was created most were past the average age of death. >> as you know they serve for life. they have taken their terms so far as they can control this during the presidency of a party that pinted them. to the extent this is a free choice they will accept to do that. you can sound lie expect they will leave the court in the next ten years. >> scalia is 76 years old just as kennedy is 76. he's a swing justice. >> they are a young 76?
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>> they are a young 76. say we have four people 80 years old let's say they all leave the court for whatever reason and president obama picks chuck schumer hillary clinton nancy pelo pelosi, barney frank. what changes? >> if president obama were able to replace justice scalia and justice kennedy for people with a like mind president that would change the balance on the court radically. that would undo the second amendment and return it to the point where the progressives like it which is only the government can allow guns. >> school of choice? >> i would say there would be little left of school of choice. a supreme court would require you to go to the public school -- present your children in the public school to the neighborhood where you live and pay taxes. >> president obama says even if
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your relaying gus belief you have to pay for it. >> doesn't care about that he would appoint justtises without agreeing with them. >> what else can it change. a sort filled with sonia sotomayor will be an act tis court. they are yawning enough to serve 20, 25. >> it will put an i am print on the law of the land. >> do you run a business, free jobs? my crystal paul says the next four years may drown you. ♪
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chart. shows what happens when recession after unemployment recover after two years. the current recovery is much slower much weaker. why? one reason is the employers now face thousands and thousands of pages of rules. that makes it scary to expand because no one even expan understands what the laws say no even those thouwho specialize i understand it. a healthcare expert has been following obama's biggest legislation obama care. she reads it so we don't have to. he is a businessman who makes these spans. much bigger and fancier ventilation systems withat plac like restaurants use. with smells and gases that might
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gl blow you up. >> it is in this environment human resources rules that don't make any sense really for mroit es. it is uncertainty about taxes coming into the marketplace. they want to regulate fan motors over horse power in a highly competitive industry. >> they say it's necessary to carry out the purposes of a 1 of the epca whatever that is to conserve the energy resources of the nation. >> they are on my side. >> you want to make money. >> we are constantly testing fans there's an industry with a scientific approach to this. >> it is helping you sell fans. >> absolutely. you are talking about a free market, john.
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>> they don't understand it. you have been in business for 35 years you built it from nothing to 700 employees. it was different 35 years ago. >> absolutely. compared to today it seemed like no regulation. certainly not at the federal level. >> we have state things to deal with now the government will be engaged in our healthcare after 25 years of self insured and efficient we don't need their help. >> i have my own copy of obama care. >> mine is much fresher than yours because i didn't read mine. you have read that and what do companies tell you? >> the employer mandate is one of the most troubling parts with it. this employer mandate has to provide health insurance. not all it has to be the one size fits all government sized plan which will cost about twice as much as what most employers
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currently offer. >> a lot of companies who have high turnover they have a cheap plan mostly young people they have to get a fancier plan. >> many companies are going to simply stop offering insurance. mckenzie and company found that over a third of employers are already considering not providing insurance. >> the penalty is cheaper. >> this employer mandated plan adds $1.79 per hour every hour for the kwcost of hiring a busb or waitress or receptionist. when you are hiring neurosurgeons when you are hiring others it does. >> employers stop offering insurance to pay a penalty. they will.
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here are people who are getting insurance on the job and have a full-time job. >> we will continue our workers under self insurance but it's going to raise the cost for us and the employees. >> you may expand less? >> you expand with capital. >> they drive some people offshore you see the components you buy, filtratiofiltration. all of those moved offshore? >> many of them have. if you think about it america should repeat. modern manufacturing uses machine tools. iffer you put enough regulation and if you have trouble. >> it's not the cost of the american worker it's confusion over there. that's the big issue for normal
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manufacturing modern manufacturing it's capital investment intensive. lat later we have the most killed throw labor in the world. >> you said the employee can't be asked to cover 9 percent of the income benlt -- incumbent primaries. >> you as an employer will have to ask what does your husband or life make to every employee. you have your household not your jour employee concept. you want to hire. this is a nightmare. ild think the only help for healthcare. height de augustable plans where the employees have a little more
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skin on em that and they are not officially beened. it will be almost impossible to get thun. >> the plan has to over cal hall ifrm drug treatment, psychiatry. >> you are raising something very vl, because they were told contraception will be easier. the current occupant says what do you think do you. who wants the president making all of those decisions. i think individuals. small temperatures they make better economic positions.
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we are going to spend a billion dollars here, billion dollars there. we will have higher unemployment tress on the middle class and that's what you have seen for the last four years. >> government pros faster than business.betsy, thank you, bob. up next, what is my -- what does my crystal paul say about mr. -- you wouldn't the illegal substance. what are the chances you go to jail. what will the next four years do to the drum war. this is america.
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click can on someone. every 19 seconds someone is arrested for drugs. what does my crystal ball show? two states made marijuana lisle. drug laws are absolutely needed some say. recent tv says are you kidding me? stheez laws do more harm than good. what do you mean? >> any dispassionate analysis -- let me say any dollars and cents any cost benefit analysis on the war of drugs would come out and say that these laws to the extent they do any good they are in terms of violence of the decemb disruption of american education policy and american medical policy. >> because the law creates a black market?
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>> i will argue with him because i agree with him. why are we wrong? >> actually a lot of problems of drug taking do not arise out of their legal gality. they prescribed the 50th. two million people have been punched into addicts by personally illegal means. >> government is not making hundreds of thousands of arrests over years. they are doing it over marijuana basically. do we have to have pass federal bar and state project going down in it is taking time from success purposes and things like that. let's say there are pom seem who get addicted to a particular diep of drug that doesn't mean
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they are all legal. we don't say because they are an alcohol i am. >> we tried that. >> we tried that. it did it had some effects where it didn't reduce the number in the cop -- country. >> when you look at the figures i looked at the murder rate. the murder rate went up 25 percent. it went up in the years before. 85 fers. between 1900 and -- >> it went up by 325 percent. >> i didn't think it had anything to do with prohibition. >> the legacy was organized crime. which know the drug war has k e created a similar gang type activity. >> talk about the next four years. you have a couple of states
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beyond medical use>> it is going to happen. colorado and washington by large margins 55 to 56 percent of the people saying yes to realizing all aspects for consumption and use. what happens next obama it is a more difficult question. he was against the state. the supreme xoert ruled in nature of the problems. because of legal marijuana i think he will have to. my guess is he lav to>> some of the hypocrisy of that tlip we
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played with obama, yeah, i inhaled. again a few years later once he was president he got an on-line ske about medical marijuana. >> i don't know what this says about the on-line audience. this was a fairly popular question. the answer is no, i don't think that is a good strategy to grow our economy. >> smoke weed. it was great. last laugh, ha, ha, i am going to set you up. he gets a free pass from pooefsh in the media he thinks are on their kied. he's even upped the anti running by one of the campaign ads with one of the actors who went to the franchise.
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>> i can't believe this is part of the official bobama campaign. >> listen i need to know if you are on board. good. i am counting on you. everybody is. >> we have to get this right. so far. >> i am trusting you onth r this and i will see you there. remember i am trusting you on this. >> president? sweet. john. [laughter] i enjoyed their movie. but he locks up thousands of people you support the war? >> of course. in england we do not lock up people for possession.
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politicians say they are against to maintain the law to prohibit there is no effort in britain to enforce the law. >> the war on marijuana and the federal war is not just wrong but corrupting the moral fiber of the country. the president makes fun of the laws he has prosecuted 800,000 people for possession alone it is not a laughing matter. it is time he catches up with the american people that the majority says marijuana should be legalized. that is the future and in this case obama who hauls out stupid and democratic democratic -- socialist ideals from europe could
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move forward. john: thank you. what my crystal ball says what my crystal ball says about the next four years.
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production of clean energy across america. >> the most important thing we can do is make sure we control our own energy. >> two important ideas more clean energy control our own energy. that does sound important. so now that owe combam ma g-- o got four more years what will happen? he studies energy at the kato institute. >> i would like green energy, too if it was affordable. as the wind energy tax credit is disappears thing this year most collapse without the subsidies they don't exist. there are only sub citied des for a reason. they cost more. >> they wouldn't be there without the subsidies. control our own energy he says. stay our owl that came from us and alaska.
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>> how about a shortage? come angry porn country cuts us off instead of buying oil from the angry foreign country we would buy oil from the angry foreign country. we will place customers to buy from the angry torn country. in 73 we had that scenario. this is a global market. >> somebody sells it to somebody and sells this to something. didn't keep how the grain beens you eat the boy seen. >> the u.s. will over take saudi r saudi arabia. >> i am old enough to remember president after president promising that they will -- >> bring us closer to energy
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pennsylvania dense by occur country. >> 1985. >> by the year 2025. >> always on the horizon. when people worry about energy pi independence they are on crude oil. they're really w imports of crude oil and we will still be dependent on foreign crude to seven mostly import from mexico or canada. the president takes credit for the boom of production. >> we have increased will production to the highest levels in 16 years in natural-gas the highest over decades. john: we? he made it happen and? >> a buy-out for brief firewood say at least he did not screw that up. he could have. john: he said this is off limits. you cannot build the keystone pipeline. >> you could say he has
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approved more permit applications than the bush administration but oil production on federal land is up and he did not screw that up. he is opposed to the hydraulic fracturing but so far he held a benign position. in this senate he voted for the law that exempted hydro fracturing from those laws now they're trying to repeal those in the administration will not back them. john: it sounds like he did it but it was people discovering new ways of. >> george mitchell spent over a decade to figure out ways to improve on hydraulic fracturing and hit the jackpot.
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in 2006 everyone believe natural-gas prices would only go higher dow dupont moved people to believe there would never come down some people say they know the energy future remember that even of the revolution of hydro-fracking everybody was betting on high prices. even corporations spent hundreds of millions to bet they would skyrocket then it it cratered. the crystal ball is not always correct. john: or sympathetic to the president but he said he will keep doing what he has been doing a. >> building wind turbines coming clean energy sources. mill company profits make
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money hand over fist i want to support energy jobs of tomorrow. john: of the technology like wind torso lurk or ethanol had merit it would not need subsidized. if it did not have the economic merit it would not get we have been subsidizing nuclear power 50 years it is still the most expensive and ethanol still cannot compete. it would disappear without the preferences. the tenth and village industry is make us feel better but it will not advance the technologies. we don't get any greater progress. we have seen it time and again. john: jerry taylor from the cato institute. my crystal ball will predict my crystal ball will predict the next four years.
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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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yesterday beater reaches puberty in health care costs more than the international debt will be up to $20 trillion over four years. the mainstream media will say that the democrats didn't accomplish what they thought because they need more time come and of course the republicans have obstructed the progress. i don't think i need a crystal ball to see that. but wait, let me turn is over. there is some good things that happen. more states legalize weed and the feds will start locking up people. gang members find useful work, drug use is no longer cool, and taxpayers save millions. >> i pronounce you both married.
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stossel: more americans are married. school choice becomes an issue. bureaucrats couldn't stop it. parents demanded. americans learn practical economics and military spending is lower. that is because the pentagon have to ask hard questions like what is our mission? america is no safer. we are richer because we have a simple flat tax and because people finally rise up and say, these rules -- they don't do what he promised. they mostly stop us from doing good, new things. they waste our time and title vii of spiderweb of freedom killing red tape. so these rules will be gone, these complex taxes, too. forty years from now, we will live without those in a prosperous, free country. it says so right here in my crystal

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